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Common Mistakes in Florida Medicaid Asset Protection Planning

• Depleting assets by waiting too long to begin asset protection planning.
• Thinking that it is too late to begin the planning process.
• Believing that Medicare pays for long term nursing home care.
• Failing to preserve a reserve fund to pay for care not provided by Medicaid.
• Relying on advice from someone who is not an expert in the Florida Medicaid program.
• Failing to get a durable power of attorney signed before a person is incompetent.
• Neglecting the possibility that the well spouse may die before the sick spouse.
• Skipping the fact that both spouses may need nursing home care.
• Failing to take advantage of spousal protection regulations.
• Transferring assets without understanding the Florida Department of Children and Families (DCF) transfer rules and penalties.
• Confusing the look back period and the transfer disqualification period.
• Causing an extension of the transfer disqualification period by applying too soon.
• Transferring the home directly to the children without understanding the homestead protection laws in Florida.
• Ignoring exempt transfers that do not result in a period of disqualification.
• Failing to disclose all transfers made in the 36 months (increasing 60 months) prior to the Medicaid application.
• Confusing the Internal Revenue Service $12,000 yearly gift tax exclusion with the DCF rules concerning disqualification penalties caused by the transfer of assets.
• Failing to consider the tax consequences during the planning process.
• Thinking that assets in any type of trust will not be counted in the available asset total.
• Lacking knowledge about how annuities can be used to gain Medicaid qualification quickly.
• Missing the use of exempt assets in the planning process.
• Confusing gross income with net income, the amount actually received after deductions for such things as income taxes, health insurance premiums, etc.
• Applying for Medicaid for a person whose gross income is greater than Florida's income cap and who does not have a Qualified Income Trust.
• Failing to fund the Qualified Income Trust each month of Medicaid benefits.
• Omitting any asset or source of income in the Medicaid application.
• Failing to keep accurate records for submission to DCF.

• Neglecting to notify DCF of any changes in assets or income after approval.